Required information Problem 6-6A Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.] At the beginning of October, Bowser Co.'s inventory consists of 59 units with a cost per unit of $41. The following transactions occur during the month of October October 4 Purchase 121 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30. October 5 Pay cash for freight charges related to the October 4 purchase, $530. October 9 Return 15 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 151 units of inventory to customers on account, $12,080. (Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $54 per unit.] October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 91 units of inventory from Waluigi Co. for $61 per unit, terms 2/10, n/30. October 22 Sell 91 units of inventory to customers for cash, $7,280. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.) Problem 6-6A Part 1 Required: 1. Assuming that Bowser Co. uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Required information Problem 6-9A Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) (The following information applies to the questions displayed below.] At the beginning of July, CD City has a balance in inventory of $3,300. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,200, terms 1/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $120. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,600, that had a cost of $2,900. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $3,000, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $4, 100, that had a cost of $2,400. July 28 Return CDs to Music Supply and receive credit of $280. July 30 Pay Music Supply in full. Problem 6-9A Part 1 Required: 1. Assuming that CD City uses a periodic inventory system, record the transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) View transaction list
